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HomeMy WebLinkAbout98 0305 min MINUTES CITY COUNCIL WORK SESSION M arch 5, 1998 The Plainview City Council met in a Work Session at 11:30 a.m. on Thursday, March 5, 1998, at the Plainview Convention Center. Notice of this meeting was posted on March 2, 1998 at 11:00 a.m. Mayor Lloyd Woods presided. Councilmembers present were: Mary Virginia Kirchhoff-Precinct 2, Rey Rosas-Precinct 3, Ross Owen-Precinct 5, Bobby McGehee-Precinct 6, and Irene Favila-Precinct 7. Councilmembers Larry Dickerson- Precinct 1 and Mike Hutcherson-Precinct 4 were absent. Staff members present were: Jim Jeffers-City Manager, John Castro-Director of Community Services, Cindy Gasaway-Administrative Assistant, Ches Carthel-Director of Public Works, Pat Hernandez-Municipal Judge, Wally Hatch-City Attorney, Norman Huggins-Director of Finance, William Mull-Chief of Police, Capt. Dan Miller-Police Department, Roland Asebedo-Fire Marshall and Karen McBeth-city secretary. News media present: Richard Orr-Plainview Daily Herald. Guests present were: Keith Cecil and Bill Young with Corplan Housing, L.C. of Dallas, Texas. Mayor Woods called the meeting to order at 11:40 a.m. The Mayor and Council reviewed the agenda posted for Tuesday, March 10, 1998. Items on that agenda which were discussed were: Item (i) of Consent Calendar: Consider authorization to enter a contractual relationship with the South Plains Association of Governments for recycling. Director of Public Works Ches Carthel explained this was on the purchase of a tub- grinder with grant money. Councilmember McGehee asked if this will be available to the public? Carthel said yes. Ordinance No. 98-3162. An Ordinance of the City of Plainview calling and setting the date for the regular municipal election; Designating precincts and polling places for precincts 1,2, 3, 4, 5, 6 and 7; Designating the election of a Councilmember for precincts 1, 2, 3, and 4 respectively; Designating the election of a Mayor; Designating early voting ballot board judge; Setting hourly rate for election officials; And posting notice of election. Councilmember Kirchhoff asked how the City could cancel an election if there were no opponents in some of the races? And what about write-ins? City Manager Jeffers explained that if certain positions were unopposed, the specific election could be cancelled C:\MyFiles\Work Session Minutes\98 0305 wsmi~.~l~e 1 of 6 by ordinance addressing that specific election. Write-in candidates must also file by a deadline. Sa. Resolution No. R98-104. A Resolution of the City of Plainview to develop an agreement whereby Excel may utilize a portion of the City's allocation of water from the Canadian River Municipal Water Authority. City Manager Jeffers said this resolution specifically stated that Excel could use water from the Canadian River Municipal Water Authority aqueduct, but could NOT use water from the water treatment plant. Councilmember McGehee asked for this resolution to be on the agenda so the Council could discuss this issue at length. Councilmember Owen asked if this has been discussed with Excel? Mr. Jeffers said not in this form. Mr. Jeffers said Excel will need treated water and if the City does not sell them water from the city treatment plant, they Will have to construct a treatment plant of their own. Mayor Woods said he would like to see Excel pay all of the expenses incurred in providing the beef packing plant with water. However, the City will have to spend $750,000 to upgrade the water treatment plant, whether we sell water to Excel or not. Councilmember Owen asked if Plainview wouldstill have the same water pressure if Excel tied onto the aqueduct directly? Director of Public Works Ches Carthel said probably. Less pressure possibly during peak times in Summer months. Councilmember Owen asked if this Resolution would create an adversarial relationship with Excel? Mr. Jeffers said he did not know. Councilmember McGehee stated Plainview is committed to the Roberts County project with CRMWA, and if that project could not be completed in as timely a manner as planned, what Ogallala water was available to Plainview should be used for its citizens and taxpayers. Mr. Jeffers said the City has also been looking at underground water sources closer to Plainview. He said the Roberts County water has a finite life also. Councilmember Owen said there should be common ground with Excel on this question. Excel is definitely a partner in the life of the City. They are its largest employer and a big player in the economic life of Plainview. Mr. Jeffers said in talking with the manager, Steve Mellinger, Excel is building a million gallon ground storage tank. However, the use of city water as opposed to their well water will be determined by cost. If the cost of acquiring and using city water is too high, they will use more well water. Councilmember Kirchhoff said even though they are building their own storage tank, they will use the same amount of water and should Excel close, the City would have an abundance of water to sell. C:\MyFiles\Work Session Minutes\98 0305 Wsmi~.~lq~le 2 of 6 Councilmember McGehee said again if Excel will take untreated water directly from the CRMWA aqueduct, it will preserve Ogallala water. Councilmember Favila asked if Excel had to use treated water? Jeffers said yes, they are handling food products. Councilmember Rosas said he agrees with Councilmembers Owen and Kirchhoff. Excel is a very big employer for the City and selling them the water they need would be good for them, and for Plainview. Councilmember Favila asked why Excel doesn't build a water treatment plant of its own? Mr. Jeffers explained that they sell beef, they are not in the water treatment business. Mr. Jeffers further explained in the event CRMWA runs out of water, Excel will get no water from Plainview. Also, if Excel builds their own water treatment plant, in order to get the EDA grant, the city will have to own the plant. Mayor Woods said he was in favor of furnishing Excel with treated water, if the price proposed will pay: for the water treatment plant upgrade required and the water transportation system to Excel. Councilmember McGehee said the full rate capacity of our treatment plant is 4.2 million gallons per day; the $750 thousand proposed upgrade to the water treatment plant will bring it to its fullest capacity and we do not have the money to upgrade to the point we can sell Excel water. Director of Public Works Ches Carthel said when the water treatment plant is upgraded to its full rate capacity, it will handle what the City is using now and can sell Excel 1.2 million gallons per day, because the City is only using 2.7 million gallons per day, which is not its full allotment from CRMWA. The City's full allotment from CRMWA is 4.8 million gallons per day and to bring the water treatment plant to this capacity, it would take an additional $800 thousand more (approximately). The distribution system to get water from the treatment plant to Excel will cost $1.6 million. Councilmember Owen said he wanted a compromise worked out whereby the City did not in effect tell Excel "no - go away." Ches Carthel said a possibility might be for Excel to build their own water treatment plant and contract with the City to be the "operator" of it. Councilmember McGehee said they would not need an operator because they have no water customers. Ches Carthel said Excel is its only customer, but if they construct a water treatment plant they must comply with all rules and regulations, notices and publications the City does, even if the notices only go to themselves as the only customer. Mr. Carthel said it would cost Excel $3.8 million to build a plant. McGehee said the City would have to upgrade its plant to handle a 4.8 million gallon capacity if we take on Excel. He said because during peak season the CRMWA water is supplemented with well water from City wells, we would be sending our well water to Excel and depleting our C:\MyFiles\Work Session Minutes\98 0305 wsmi~.~e 3 of 6 underground water which we should conserve. Mr. Jeffers said that even if the Resolution does not pass, these points can still be negotiated with Excel. Councilmember McGehee said his major point is, Excel will get the City's water from the Ogallala aquifer and this is what he is against. There were no Liaison Reports. Director of Community Services John Castro introduced Keith Cecil, president of Corplan Housing and Bill Young, his associate. Corplan has its home office in Dallas, TX and is a corporation which develops and builds multi-family rental housing units. Mr. Cecil provided those present with a booklet outlining his proposed project for the City of Plainview. He proposes a 192 unit development financed with tax exempt revenue bonds issued by a housing finance corporation, which can be set up by the City or use an established finance corporation with the South Plains Association of Governments. Under the Corplan proposal, all pre-development funds are provided by Corplan and all expenses, including any incurred by the sponsoring governmental entity, by bond proceeds. Should the City decide to pursue such a project with Corplan, the City/Finance Corporation would first sign an agreement with Corplan. Then Corplan will complete a feasibility study within two months, at their expense. Assuming the report is favorable, the next step would be to sell the bonds. The community would need to fully support the issuance of bonds for this development. Site selection and packing and selling of bonds would take approximately four months. The construction of the "garden apartments" could begin following the sale of tax exempt revenue bonds and should be completed within ten to twelve months, depending on the number of units. A management corporation would oversee the leasing and management of the properties. Corplan and the Housing Finance Corp. would monitor the operations on a regular basis until the bonds are paid, or there is divestiture of the property. Bonds normally pay off between 12 and 15 years, even if they are 25 year bonds. Corplan is currently developing over 1,000 units of multi-family projects in Kenedy, Bonham, Sherman, Whitesboro and Childress. They propose to construct a 192 unit, two story garden apartment in 24 buildings, plus a club/exercise/laundry building which will require approximately 10 to 15 acres. These will consist of one, two and three bedroom apartments. The construction will be Wood frame, and will be built to local code. Rents will range from $385 for a one bedroom unit, to $650 for a three bedroom unit. All units will require a $150 deposit. Mr. Jeffers said Mr. Castro will do a comparison of the two proposals the Council has seen C:\MyFiles\Work Session Minutes\98 0305 WSrni~.~'~e 4 of 6 and the Council can discuss them at the next Work Session. Director of Public Works Ches Carthel reported the proposed grant application to EDA, to be administered by South Plains Association of Governments, has been reduced to $2 million. This grant .must include the proposed distribution of water to Excel or we do not qualify for the grant. The water treatment plant improvements cost will be $716,000; the transmission main cost will be $1,614,200; water lines to Excel $1,000,000; engineering/administrative costs $719,800; for a total project cost of $4,050,000. Projected funding will be $2 million from the EDA grant and $2,050,000 from the City of Plainview. Ches Carthel reported on the proposed Wetlands Restoration ProjeCt proposed by the US Corps of Engineers. The project concept is to construct a pipeline from the water reclamation plant to the West side of Plainview, discharged to Running Water Draw. The plan is to improve the quality of life by creating three, or more, lakes for recreational use, bike trails, walking trails and other amenities. The project will take approximately thee years to complete. The first phase is a feasibility study, which would cost $500,000. Half would be paid by the City, and the remainder would come from federal funding. The second phase would be the design and construction. The City would need to begin the study by May, 1998. If the City waits past October, 1998 there will be no federal funds for the project. The Council discussed the proposal and the alternate use of this discharge for irrigation use. Councilmember McGehee reported on the North South Highway Corridor project. He said Lubbock is seriously pursuing this proposal. It is being sought under the auspices of ISTEA. It is to designate 1-27 as a priority trade corridor and with Plainview on 1-27, it is in a good position to benefit from this trade designation. Mr. McGehee said things seem to be falling into place, and some activity may occur in 2002. Mayor Woods reported he hopes to have plans in place to have a Town Hall Meeting sometime after the 18th of March. He will keep the Council and staff posted on plans. Mr. Jeffers told the Mayor and Council the City had received a letter from the EPA of proposed penalty on the wastewater treatment plant. He said the City is preparing a response and will ask for a hearing. He said the City is moving as quickly as practical and the notice is taken seriously. Councilmember Owen asked what would happen if the City was assessed a fine and refused to pay? Mr. Jeffers said he would discuss such with legal counsel. Mr. Jeffers said he attended a meeting of the Steering Committee of the Coalition of Texas Cities regarding EPA Stormwater Phase I1. He said the coalition consists of 40 plus cities. He said he will keep them informed on events regarding the committee's actions. C:\MyFiles\Work Session Minutes\98 0305 wsmi~.~e 5 of 6 Mayor Woods told everyone a group from Liberia will be visiting Plainview in a few days. They want to meet with the Mayor and Councilmembers during their visit. MayOr Woods adjourned the meeting at 1:15 p.m. PASSED AND APPROVED on the 24th of March, 1998. K~ren McBeth, city secretary C:\MyFiles\Work Session Minutes\98 0305 wsmi~.~e 6 of 6